KUALA LUMPUR (March 23): A former project director told the Sessions Court here on Wednesday (March 23) the Penang undersea tunnel project has yet to benefit the state government and rakyat.

Datuk Yeoh Lean Huat, who was the project director of the Air Itam-Tun Dr Lim Chong Eu Expressway bypass (Package 2), described the project as mired with purported woes and troubles and that the physical construction had yet to begin.

Package 2 is one of the four packages of Penang’s three major roads and an undersea tunnel project — collectively referred to as the Penang undersea tunnel project — which was awarded to Consortium Zenith Construction Sdn Bhd (CZCSB) in September 2013, with the alleged help of former Penang chief minister Lim Guan Eng.

Yeoh, who was the project director of Package 2 from October 2019 to Dec 31, 2021, testified that the project had progressed slowly, and that he was not satisfied with CZCSB based on its progress thus far.

“The progress of works for Section 1 was as much as 6.8%, whereby it was 1.49% for the whole of Package 2. At this time, this project has not provided any benefit to the [Penang] state government and rakyat,” Yeoh, who is the 24th prosecution witness, added.

He noted that Section 1 of Package 2 spanned a distance of 1.069km, while the entirety of Package 2 — comprising a total of six sections — stretched over 6km.

He testified that CZCSB had reasoned that the delay was due to the company having undergone changes in major shareholding and had to restructure its management team for the project.

“Other than that, the detailed design which was sent by CZCSB prior to this for approval was restudied (amended) by the project’s new management team.

“This caused delays from the perspective of progress works because there was a need to put the detailed design study on hold. An issue involving the exchange of land also surfaced when the new detailed design was studied, as changes relating to the size of land transferred by the [Penang] state government were needed,” he said in reply to Deputy Public Prosecutor Mahadi Jumaat's questions.

In response to the delay, Yeoh, 62, said he had issued letters warning the contractor of its sluggish progress, and recommended certain actions to be taken to overcome the delay.

“Among them is holding monthly site meetings where the project director would monitor and resolve matters arising on site. In addition, the Technical Work Committee would also convene each month to monitor and resolve issues faced by CZCSB’s consultants related to the detailed design,” the witness elaborated.

In response to questions during examination-in-chief by Mahadi, Yeoh noted that according to the latest progress report he received — dated end-December 2021 — progress of works for Package 2 stood only at 9%.

“The detailed design of Package 2 has been completed, and the construction of utility for Section 1 has begun. However, the construction of the physical structure has yet to begin.

“Additionally, construction of the project (Package 2) has not been approved as a whole,” he added.

He also said that to his knowledge, upon his retirement as Package 2 project director on Dec 31, 2021, there had been no payments made to the contractor although it is claiming a sum of RM6.9 million as interim payment.

“However, the payment is not made, due to the Penang government agreeing the payment in kind was to be made via the land swap as agreed in the sub-agreement for Package 2,” Yeoh said.

Lim is on trial as he is accused of having corruptly solicited gratification to help a company Consortium Zenith BUCG Sdn Bhd secure the undersea tunnel project. This was when he was the then Penang chief minister.

He is alleged to have sought 10% of the profit to be made by the company from Datuk Zarul Ahmad Mohd Zulkifli, who is the company director, nearby The Gardens hotel, Mid Valley City, Lingkaran Syed Putra here in March 2011.

On Aug 10, the former DAP secretary-general was charged in the Butterworth Sessions Court with using his position as the then chief minister of Penang to solicit RM3.3 million in gratification for himself as an inducement for helping the company to secure the project, valued at RM6.3 billion.

On Sept 11, the Bagan member of Parliament was charged in the same court with two counts of causing two plots of land belonging to the Penang government worth RM208.8 million to be disposed of to two companies, which were linked to the state’s undersea tunnel project.

The offences were allegedly committed at the Penang Land and Mines Office, Level 21, KOMTAR, on Feb 17, 2015 and March 22, 2017 respectively.

Lim pleaded not guilty to all four charges.